Series 79: Rules Relating To Fixed-Price Offerings

Rules Relating to Fixed-Price Offerings

Certain restrictions apply specifically to fixed-price offerings, defined for purposes of FINRA Rule 5141 as an “offering of securities at a stated public offering price or prices” in the United States or its territories. Rule 5141 prohibits any member or associated person that is part of a syndicate or selling group, or that is acting as a single underwriter, from directly or indirectly offering or granting any securities in the offering at a “reduced price,” meaning a price below the stated offering price. (The rule does not prohibit transactions between members of the syndicate or selling group.)